The European Investment Bank (EIB) is lending USD 150 million to Vnesheconombank (VEB) to finance its participation in the International Fund to Support Entrepreneurship that is being set up by VEB and KfW. EIB funds will enable VEB to participate in the creation of an innovative source of medium and long-term financing for SMEs and mid-caps in Russia, supporting the development of the private sector and contributing to sustainable social and economic development.

Mr Anton Rop, EIB Vice-President responsible for lending operations in Russia stated: “The loan signed today builds on the excellent cooperation between the EIB and VEB as it is already the second EIB loan extended to VEB supporting in particular Russian SMEs under the EU-Russia Partnership for Modernisation initiative. Including this loan, the EIB has provided EUR 313 million to VEB under the Memorandum of Understanding on the joint financing of projects related to this initiative that was agreed between the EIB and VEB on the occasion of the EU-Russia Summit in Nizhniy Novgorod in June 2011.”

This credit line is being granted in the framework of the EU-Russia Partnership for Modernisation launched at the 25th EU-Russia Summit held on 31 May – 1 June 2010 in Rostov. The Partnership for Modernisation serves as a flexible framework for encouraging reform, boosting growth and fostering competitiveness. All of these objectives are supported by promoting small and medium-sized enterprises and the exchange of experience between the EIB and Russian financial institutions on the subject of financial services for SMEs and mid-caps.

Background

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

The EIB finances projects in the Russian Federation on the basis of an EU Council and European Parliament mandate for the Eastern Partner Countries (Armenia, Azerbaijan, Georgia, Moldova, Russia and Ukraine) of EUR 3.8 billion for the period 2007-2013 to contribute to local private sector development, the improvement of social and economic infrastructure, and climate change mitigation and adaptation.